Endowment policy method of calculating depreciation
Briefly describe endowment policy method of calculating depreciation?
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This method is related to Sinking Fund method apart from in this method rather than investing in securities the amount set aside is employed to pay premium on an Endowment Policy. And the policy must grown-up on the date on that the ceases its valuable life. This collected money is then employed to replace the ended asset.
he following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost
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